Priyadarshini Mills likely to tap mkt to fund power foray

Priyadarshini Spinning Mills, engaged in yarn-manufacturing, now plans to diversify into power by setting up small-sized hydro and gas-based plants and could tap the market to raise funds to finance them, a top company official said.

"We plan to diversify into power having identified the sector as one with immense growth potential. We plan to set up a 12 MW hydro project at Dummugudem in Andhra Pradesh at an investment of around Rs 90 crore," Priyadarshini's Managing Director Harish Cherukuri told PTI here.

There is a tremendous shortage of power in the country and going forward, "We foresee immense growth opportunities here," Cherukuri said.

The company is also looking at setting up a 64 MW gas-based project in Andhra Pradesh and is seeking a licence for it.

"The investment here will be around Rs 300 crore and we plan to take-in a strategic investor for this project. This will be a joint venture where we will be the primary investor," Cherukuri said.
    
The company hopes to obtain all approvals for its hydro project in a month and is eyeing financial closure by end-Q2 this fiscal. For the gas-based project, the company is eyeing financial closure by end-this year, he said.

The company will fund both the projects through internal accruals, debt and by tapping the market.
    
"We will decide on the route to tap the market soon," he said.
    
If the two projects fructify, then the company intends to tap more licences for projects outside Andhra Pradesh as well, he said.
    
"We are interested in small-sized power projects," he said, adding that going forward the company could set up a subsidiary to run its power business.